TWR - Tower Insurance.

[Balance]

Do you really think they’ll pay a dividend as well as paying out claim holders ..

Actually I think that’s a good sign that they will - probably not the 70% they have indicated but I think 35% as a start.

Market thinks otherwise so let’s see what happens on 28 May.

[Independent Observer AUNZ]

Actually I think that’s a good sign that they will - probably not the 70% they have indicated but I think 35% as a start.

Market thinks otherwise so let’s see what happens on 28 May.

On balance, Balance, I agree. The Board will be anxious to start returning dividends and I think something like 35-50% would be a decent outcome for all stakeholders.

[Balance]

Sp is firming nicely ahead of the results tomorrow.

Market anticipating the payment of a dividend?

[macduffy]

Sp is firming nicely ahead of the results tomorrow.

Market anticipating the payment of a dividend?

Possibly. But RBNZ governor is drawing attention to the need for insurers and second tier financiers to shore up their capital. If they take that seriously they'll follow the lead of the banks and defer dividends at this time.

[sb9]

Possibly. But RBNZ governor is drawing attention to the need for insurers and second tier financiers to shore up their capital. If they take that seriously they'll follow the lead of the banks and defer dividends at this time.

True, I doubt dividend would be on the cards tomorrow.

[Independent Observer AUNZ]

Due to personal circumstance and re-balancing, I've sold my holding - I think TWR is well placed though and think they will go to dividend in 6 months and be steady from there on. They are well positioned to take market share from the other incumbents so I'll be keeping a close eye.

[bull....]

insurance companies very at risk in a low rate or negative rate environment of going bust as highlighted by RBNZ

[Cadalac123]

insurance companies very at risk in a low rate or negative rate environment of going bust as highlighted by RBNZ

Um why would they go bust. Lose some
Revenue from first rates sure but completely bust ?

[bull....]

Um why would they go bust. Lose some
Revenue from first rates sure but completely bust ?

falling investment revenue from low returns. keeps getting worse as rates go even lower. unlike banks it isnt as easy for them to maintain a margin. guess they could stop insuring more high risk stuff or jack your premiums thru the roof etc but even that has a limit. big event claims wipes them out as they dont have the revenue to payout even with re-insurance. aus insurance company reporting provides good insights into the delemma of falling investment returns

[Cadalac123]

falling investment revenue from low returns. keeps getting worse as rates go even lower. unlike banks it isnt as easy for them to maintain a margin. guess they could stop insuring more high risk stuff or jack your premiums thru the roof etc but even that has a limit. big event claims wipes them out as they dont have the revenue to payout even with re-insurance. aus insurance company reporting provides good insights into the delemma of falling investment returns

Sure but their investment returns are currently an insignificant portion of their revenue so how would that lead them to going bust

Disc not a holder